Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

v2.4.0.6
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table (in thousands) shows the fair value of our derivative assets and liabilities that are required to be measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011, which are classified as other current assets, other current liabilities and other non-current liabilities in our Consolidated Balance Sheets.
 
Fair Value Measurements as of
 
September 30, 2012
 
December 31, 2011
 
Quoted Prices in Active Markets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
 
Quoted Prices in Active Markets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
LNG Inventory Derivatives asset (liability)
$
—

 
$
(165
)
 
$
—

 
$
(165
)
 
$
—

 
$
1,610

 
$
—

 
$
1,610

Fuel Derivatives asset (liability)
—

 
60

 
—

 
60

 
—

 
(1,415
)
 
—

 
(1,415
)
Interest Rate Derivatives liability
—

 
(29,676
)
 
—

 
(29,676
)
 
—

 
—

 
—

 
—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table (in thousands) shows the fair value of our interest rate swaps:
 
 
 
 
Fair Value Measurements as of
 
Balance Sheet Location
 
September 30, 2012
 
December 31, 2011
Interest Rate Derivatives
Other current liabilities
 
 
$
(292
)
 
$
—
 
Interest Rate Derivatives
Other non-current liabilities
 
 
(29,384
)
 
—
 
The following table (in thousands) shows the fair value and location of our LNG Inventory and Fuel Derivatives on our Consolidated Balance Sheets:
 
 
 
 
Fair Value Measurements as of
 
Balance Sheet Location
 
September 30, 2012
 
December 31, 2011
LNG Inventory Derivatives asset (liability)
Prepaid expenses and other (other current liabilities)
 
$
(165
)
 
$
1,610

Fuel Derivatives asset (liability)
Prepaid expenses and other (other current liabilities)
 
60

 
(1,415
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives recorded in revenues on our Consolidated Statements of Operations during the three and nine months ended September 30, 2012 and 2011:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
LNG Inventory Derivatives
$
(228
)
 
$
494

 
$
697

 
$
494

The following table (in thousands) shows the changes in the fair value and settlements of our Fuel Derivatives recorded in derivative gain (loss) on our Consolidated Statements of Operations during the three and nine months ended September 30, 2012 and 2011:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
Fuel Derivatives
$
287

 
$
(716
)
 
$
(288
)
 
$
(1,164
)
Schedule of Interest Rate Derivatives
The following table (in thousands) shows our Interest Rate Derivatives market adjustments recorded during the three and nine months ended September 30, 2012:
 
Gain (Loss) in Other Comprehensive Income
 
Gain (Loss) Reclassified from Accumulated OCI into Interest Expense (Effective Portion)
 
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Interest Rate Derivatives
$
(29,676
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

At September 30, 2012, Sabine Pass Liquefaction had the following Interest Rate Derivatives outstanding that converted $20.0 million of the Liquefaction Credit Facility from a variable to a fixed interest rate. Sabine Pass Liquefaction pays a fixed interest rate on the swap and in exchange receives a variable interest rate based on the one-month LIBOR.
Initial Notional Amount
 
Maximum Notional Amount
 
Effective Date
 
Maturity Date
 
Weighted Average Fixed Interest Rate Paid
 
Variable Interest Rate Received
$20.0 million
 
$2.9 billion
 
August 14, 2012
 
July 31, 2019
 
1.98%
 
One-month LIBOR